First-Time Homebuyers Incentive Program

First-Time Homebuyers Incentive Program is a forgivable loan for homebuyers in Baltimore, Maryland. Foundational Baltimore City DPA incentive: $10,000 forgivable second for first-time buyers, 5-year 20%/year forgiveness, 80% AMI cap, Baltimore City only. Pairs with MMP and FHA/VA/USDA/conventional first mortgages. $10,000 down payment and closing cost assistance for first-time homebuyers in Baltimore City (formerly $5,000. DOUBLED to $10,000 by Mayor Brandon Scott in April 2023). Structured as a 0% interest 5-year forgivable second mortgage, forgiven 20% per year over 5 years of continued owner-occupancy. Formerly known as the Community Development Block Grant (CDBG) Homeownership Assistance Program. 80% AMI household income cap. First-time homebuyers only. Property must be in Baltimore City. Buyer must contribute $1,000+ of own funds. Homeownership counseling certificate from city-approved agency required (valid 12 months). Pairs broadly with Maryland Mortgage Program (MMP) and other FHA/VA/USDA/conventional first mortgages. Foundational stackable Baltimore City incentive that other DHCD bonuses (Direct Homeownership Assistance +$5,000 for renters/disabled households) layer on top of. Funding comes from Federal CDBG and Local Government.

First-Time Homebuyers Incentive Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Forgiven 20%/year over 5 years of continuous owner-occupancy. Prorated unforgiven balance due on sale, transfer, cash-out refi, or non-owner-occupancy within 5 years. The assistance is recorded in 2 position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

First-Time Homebuyers Incentive Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Single-parent / displaced-homemaker exceptions per HUD definition. On credit, the program states: No DHCD-published FTHIP minimum; first-mortgage lender's product minimums apply (typically 620-640). A homebuyer education course is required, through Baltimore City-approved homeownership counseling agencies: NHS of Baltimore, Druid Heights CDC, Belair-Edison Neighborhoods, Southeast CDC, GO Northwest, St. Ambrose Housing Aid Center, Diversified Housing Development. Residency requirement: Property must be in Baltimore City corporate limits and serve as primary residence. Citizenship or immigration status: U.S. citizen or eligible non-citizen per first-mortgage product rules. First-time homebuyer (no primary residence ownership in past 3 years; displaced-homemaker / single-parent exceptions per HUD). 80% AMI household income cap. Owner-occupied primary residence. Property must be in Baltimore City limits. $1,000 minimum buyer contribution from own funds. Homeownership counseling certificate (workshop + counseling session) from city-approved agency, valid 12 months. Fixed-rate first mortgage only (no ARMs, balloons, cash, owner-financing, co-signers). Mortgage cannot exceed FHA loan limit ($731,400). Housing Quality Standard (HQS) inspection required. Apply and be approved before closing.

First-Time Homebuyers Incentive Program limits household income to 80% of the area median income, which varies by county and household size. Household income at or below 80% AMI for Baltimore HMFA, by household size. Approximate 2026 80% AMI: $68,450 (1-person) to $129,050 (8-person). Verify current at livebaltimore.com/annual-median-income-limits-for-baltimore-city. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

First-Time Homebuyers Incentive Program caps the purchase price as follows: First-mortgage amount cannot exceed FHA loan limit for Baltimore MSA ($731,400 single-family). Eligible property types include Single-family detached, Townhome, Rowhouse, Condominium, and 2-4 unit owner-occupied. New construction is eligible. Manufactured homes are not eligible.

First-Time Homebuyers Incentive Program serves homebuyers purchasing in Baltimore, Maryland.

Applications for First-Time Homebuyers Incentive Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Apply online via Baltimore Applicant Portal (https://applicantportal.dhcd.baltimorecity.gov). First-come, first-served subject to fund availability. Pre-approval required before closing. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.